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What Is The Latest Education Loan Scheme: It’s Objective And Highlights

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To increase the literacy rate of India from 74% (Census 2011), the Government of India launched education loan scheme to provide subsidised advances to students. Schemes like Padho Pardesh, Nai Manzil, etc. have been launched, providing credits with allowances on interest rates to the economically weaker sections and minority group individuals of the society.

Padho Pardesh 

The Padho Pardesh scheme came into effect on 1st April 2013 and provides advances to students with family income below Rs. 6 Lakh per annum. To avail student education loan under this scheme, you should be a resident of India and should not have given up your Indian citizenship under any circumstances. You can apply for credits under this scheme to pursue higher education abroad for your masters, M.Phil. or PhD courses. Before you apply you will have to secure admission in any of the institution abroad and should be pursuing any of the mentioned courses.

Under the education loan scheme, you get to enjoy a moratorium period throughout your course with an additional year or six months till you secure employment, whichever is earlier. During your moratorium period the interest rate will be borne by the Government of India.

After the moratorium period ends, you will have to make payments for the interest rates applied on the outstanding balance. Such subsidised interest rates reduce the strain in your budget and help you to manage your finances better while studying abroad.

To avail the advantages of this scheme, you have to apply for an advance from your preferred financial institution by filling up the Padho Pardesh application form. After you submit the required documents your lender will update your information on the official portal.

Nai Manzil

The Nai Manzil scheme came into effect from 8th August 2015 and offers education loans to students who are school drop-outs and provide them with education up to 8th or 10th standard via National Institute of Open Schooling or any other state open schooling.

Highlights of this Scheme

  1. The scheme also provides placements to 70% of the trained students to help them earn their basic annual wage.
  2. This programme also aims to raise sensitisation and awareness in life and health skills. It also provides integrated skill training to help them survive in the competitive market.
  3. Under this education loan scheme, the seats reserved are as follows:
    • 30% for females,
    • 5% for disabled candidates,
    • 15% for students belonging to the below poverty level (BPL) families.
  4. The scheme aims to finance the livelihood and educational needs of the minority sections and Muslims of the country.
  5. It also helps them to pursue distance medium education for 11th and 12th certification. The certifications will be provided as per the State Board or NIOS norms.
  6. Under this scheme, students between the ages of 17 and 35 can pursue courses on soft skills, engineering, manufacturing, and services.
  7. This scheme aims to provide integrated skills and education training programme from 9 to 12 months. Out of the mentioned period, 3 months will be dedicated to only skill training.

However, it is necessary to qualify the education loan eligibility criteria for availing the scheme. In such case if you do not qualify, you can avail secured advances like loan against property for higher education. Before you apply for a loan, do make sure to know the interest rate and other charges on your loan against property.

Other additional charges that may be applied on your credit are:

  • Processing fees
  • Late payment fees
  • Pre-payment charges
  • Foreclosure charges

Several financial institutions and NBFCs provide such credits with a substantial loan amount and prolonged tenure. Bajaj Finserv is one such NBFC that offers Loan Against Property for Education at an attractive interest rate against minimal documents. They also provide online account access, instant approval, balance transfer facility, etc.

This NBFC also brings you pre-approved offers available on multiple financial products like home loans, personal loans, business loans, etc. These pre-approved offers reduce the hassle of the application process and save your time.

In addition to the above, these Government education loan schemes provide several benefits through their official portal. These include, applying for advances, tracking the status of your application and availing other information.

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